How to Balance the Federal Budget (in Three Days)

As the American economy continued to lurch, and the country's politics became more and more enflamed with worry (and shameless demagoguery) over our long-term fiscal health, the Esquire Commission to Balance the Federal Budget — comprised of esteemed former Senators Bill Bradley, Bob Packwood, Gary Hart, and John Danforth, and chaired by MSNBC's Lawrence O'Donnell — met in New York in August, with the goal of creating an actionable plan to balance the federal budget.

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They did just that.

Today, as President Obama's own budget commission labors to meet its December 1 deadline, and the size and scope of the federal government becomes Topic A in the seismically important upcoming election, we proudly announce the report of the Esquire Commission to Balance the Federal Budget.

First, some context. Back when we first had the idea to convene a panel of experts from across the political spectrum to come up with a specific, actionable plan to balance the federal budget by 2020, we had no idea what to expect. The Commission could've fallen apart before the first meeting. Someone could've bailed at the last minute and thrown off the delicate balance between our two Republicans, two Democrats, and one realpolitik operator. They could've all come together and reached the same partisan deadlock that is currently paralyzing our government. Or, they could've come together and reached a conclusion that they liked but that we, the lowly editors of Esquire, hated beyond all comprehension.

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But none of those things happened. For three days in August, Senators Bill Bradley, Gary Hart, John Danforth, and Bob Packwood, along with former Senate aide (and MSNBC host) Lawrence O'Donnell, met in New York City and debated, deliberated, and compromised their way to a set of proposals that cuts spending, generates revenue, and plots a course to renewed American prosperity. Among their recommendations:

Gradually raise the normal retirement age to seventy: Currently, the retirement age is sixty-six, and starting in 2021, it is scheduled to gradually increase to sixty-seven at a rate of two months a year. As Americans today are living and working longer than in previous generations, the commission proposes to instead begin gradually increasing the retirement age to seventy before 2021, but at a rate of one month per year. Projected savings in 2020: $49 billion

Restructure the military along strategic lines: The commission believes that the U. S. defense establishment must be fundamentally reorganized to meet the challenges of the twenty-first century. The number of nation-state wars for which our military is configured is going down while the number of irregular and unconventional wars is going up, and yet the military is still procuring and paying for a cold-war-based defense system. To better meet these new challenges requires a shift in how the military allocates its resources, and the commission estimates that this shift will result in a decrease in overall defense spending. Projected savings in 2020: $169 billion

Repeal employer health-care tax exclusion and offer a refundable health care tax credit: The commission proposes that a person's employer-provided health benefits be taxed as personal income; however, the government would also offer a refundable tax credit that employees can put toward paying for their health insurance. Projected revenue in 2020: $63 billion

Increase the federal gasoline tax by $1 per gallon: The current federal gas tax is 18.4 cents per gallon, but the commission proposes to increase the federal gas tax, gradually and beginning in 2013, so that in 2020, it would be $1.18 cents per gallon. This would not only generate significant revenue but also reduce consumption of gas, reduce carbon emissions, and provide an incentive to automakers to increase the fuel efficiency of their vehicles. Projected revenue in 2020: $130 billion

And that's just the tip of the iceberg. There are 17 more proposals where those came from, and — spoiler alert — the Commission not only managed to balance the budget in 2020 — they achieved a $12 billion surplus. They not only reformed Social Security — they guaranteed its long-term solvency. And they not only proposed to keep tax rates low — they found a way to keep them at or near their current levels for the next decade. And they did it all in three days.